Here are some mortgage updates

Here are some updates you should be aware of for mortgages in general:

1. As of October 1, high balance conforming loan limits for San Luis Obispo County go down from $687,500 to $561,200 for a single family residence with similar decreases for 2-4 unit properties.  If you have any pending transactions with a loan anticipated in this range, be aware.

1. Also as of October 1, USDA is changing its fee structure.  The up front fee is going down from 3.5% to 2%.  That is the good news. The bad news is that there will now be a .3% per year annual insurance premium for USDA loans where previously there was none.  This is still much less that FHA recurring insurance costs, but nonetheless will be a factor to remember.

1. Cal STRS loans for State Teachers Retirement System members is changing too.  The 80/17 program that previously allowed for 3% down with no mortgage insurance is now changing to an 80/15 program with a 5% down requirement.

We’ll have new marketing material out for you over the next few weeks about these changes, but I wanted to make sure you know in the meantime.

Best regards,